Union Bank Deepens Financial Inclusion Efforts with ₦150m Lending Push to Underserved Businesses

Union Bank of Nigeria is positioning itself at the forefront of efforts to close Nigeria’s financial inclusion gap, as the country’s banking sector grapples with the realities of an economy that extends far beyond formal employment.

For years, Nigeria’s financial system has largely catered to salaried workers and corporates with steady income, documented collateral, and traditional credit histories. While effective for structured customers, this model has left a significant portion of the population underserved.

That reality is most visible in the informal economy market traders, cooperative societies, agro-dealers, and artisans whose businesses are active and profitable but often excluded from formal credit systems due to rigid banking frameworks rather than lack of economic value.

Data from the Enhancing Financial Innovation & Access shows that about 26% of Nigerian adults remain financially excluded, while the World Bank continues to identify access to finance as a major barrier to small business growth.

Union Bank is responding through its alpher initiative, a targeted financial solution designed for underserved market segments

 Through this programme, the bank has disbursed over ₦150 million in cash-flow-based loans and extended more than ₦106 million in discounted credit to businesses operating within informal market clusters. It has also supported financial literacy training and expanded access to banking services for previously unbanked entrepreneurs.

Under the leadership of Yetunde B. Oni, the bank is also aligning its internal structure with its inclusion agenda, reinforcing diversity and access across governance and workforce policies.

Industry observers say Union Bank’s approach reflects a broader shift in mindset from forcing customers to fit traditional banking models to designing financial systems that reflect how Nigerians actually earn, trade, and grow.

As the inclusion gap remains significant, Union Bank’s strategy signals a growing recognition that the future of banking in Nigeria depends on serving the economy in its real, not ideal, form.